The agribusiness industry has long been an investor favorite on Wall Street, as these companies provide indirect exposure to some of the most popular commodities on the market. Agricultural products are best known for human consumption, although these commodities are widely used in a number of other applications, making the producers of these products highly appealing [for more commodity news and analysis subscribe to our free newsletter].
The bears arrived on Wall Street with little warning and dragged the S&P 500 Index down almost 8% in just one month after the benchmark peaked on September 19th before finding a bottom in mid-October. Since 10/15, major equity indexes have rebounded sharply, with the S&P 500 gaining over 3% in just one week, perhaps signaling that the recent round of profit taking might be over as we head into the final stretch of 2014 [for more commodity futures news and analysis subscribe to our free newsletter].
The oil and gas industry has experienced tremendous growth in recent years, thanks in part to new technologies such as hydraulic fracturing, or fracking. Big Oil companies have benefited significantly from fracking, though there are several smaller players in the industry that have also profited. Companies that produce fracking sand, a key component in the hydraulic fracturing process, have become more popular with investors in recent years [for more commodity news and analysis subscribe to our free newsletter].
Mining stocks have received a lot of attention over recent years, as more and more investors have been turning to this sector in search of attractive returns. But as witnessed last year, mining companies in particular can quickly make a turn for the worse, with rising operational costs and falling commodity prices making big impacts on bottom line returns [for more commodity news and analysis subscribe to our free newsletter].
The bulls have returned to the driver’s seat at home as evidenced by the S&P 500′s steep rebound following the short-lived pullback that was sparked on the last trading day of July. Easing tensions between Russia and Ukraine and a (temporary) ceasefire in Gaza welcomed back buyers on Wall Street after the S&P 500 managed to sink about 4% in just two weeks [for more commodity futures news and analysis subscribe to our free newsletter].
Major equity indexes climbed higher this past week thanks to some encouraging economic data releases at home. Investors welcomed a 3.4% improvement in pending home sales over the past month, better-than-expected ADP employment data on Wednesday, and upbeat ISM manufacturing data on Thursday. Overseas, tensions between Ukraine and Russia remain at center stage, and as such, the lack of major developments left the doors open for buyers [for more commodity futures news and analysis subscribe to our free newsletter].
Our society today thrives on technological breakthroughs; whether its smarter sensors or more efficient semiconductors, we are constantly seeking out ways to improve our everyday lives. When we think about the basic materials market, resources like timber, steel, and copper generally come to mind first; however, what is often overlooked is the development of new materials and the important roles they play in both encouraging and facilitating the very same technological breakthroughs that our society depends on [for more commodity futures news and analysis subscribe to our free newsletter].